IoT generated USD10 billion in revenues worldwide in 2013 for mobile network operators
Morgan Mullooly, Analyst at Analysys Mason believes the announcement will be a tremendous boost for the extremely important fledging British IoT sector. Analysys Mason is a specialist consultancy and research firm, specialising in telecoms, media and technology.
According to Analyst Morgan Mullooly:
The commitment of funds will come as a tremendous boost for the extremely important fledging British IoT sector.
Embedded systems have been a feature of all kinds of devices for years (vending machines, coffee dispensers, heavy machinery), but the concept of IoT is about networking these types of devices and coming up with innovative solutions based around this added connectivity. It’s also about adding connectivity to objects that traditionally haven’t been perceived as having intelligence, or being sources of intelligence – furniture, clothing, home appliances, and so on.
Examples of innovative UK IoT firms range from the very large, such as ARM which designs the super small, low powered, semiconductors which support deployment of intelligent connected devices, to the multitude of small, ambitious, innovative start-ups creating clever IoT solutions such as Neul (both mentioned in the Prime Minister’s speech). These firms generate the most press, but there are any number of smaller companies that are achieving substantial revenues by providing IoT middleware - for example, New Forest Communications (Dorset) and Stream Communications (London & Glasgow).
Substantial beneficiaries of this sector have been mobile network operators which are leveraging the IoT opportunity as a way of combatting declining revenue from traditional voice and data services. For the mobile networks alone, IoT generated USD10 billion in revenues worldwide in 2013 for mobile network operators, and this will increase to USD88 billion by 2023.
The Prime Minister mentioned ‘We are on the brink of a new industrial revolution’. Companies like GE have already identified a particular interest in the ‘Industrial internet’ or the ‘Internet of things that spin’ – referring to things like jet engines, locomotive engines, wind turbines and all other types of industrial machinery. GE has begun adding sensors and SIM cards into large industrial components which feed data into back-end systems which monitor the equipment for faults and apply predictive analytics which suggest optimal maintenance schedules.
About the Morgan Mullooly, Analyst at Analysys Mason
Morgan Mullooly is part of Analysys Mason's Enterprise team. His primary area of focus is on the M2M, or Internet of Things (IoT) sector. This includes analysis on a variety of topics including IoT enterprise requirements, forecasting, vendor profiles and service provider scorecards. Morgan was previously the lead analyst for Analysys Mason’s Spectrum research programme, focusing on spectrum valuation, LTE strategies and white space technologies. Morgan has a Master’s degree in Philosophy and Public Policy from the London School of Economics.
Analysys Mason is a specialist adviser on telecoms, technology and media (TMT). We work with our clients, including operators, regulators, financial institutions, equity partners, media and content players etc... With over 250 staff in 12 offices, we are respected worldwide for our exceptional quality of work, independence and flexibility in responding to client needs. For 30 years, we have been helping clients in more than 100 countries to maximise their opportunities. www.anlaysysmason.com